Oasis Petroleum Inc. (OAS)

[eFinanceMarkets]

Oasis Petroleum started at Hold by Stifel

Oasis Petroleum (OAS -1.4%) is initiated with a Hold rating and $13 price target at Stifel, after the shares have shed more than 7% YTD.

Stifel thinks OAS is trading at fair value but also believes improved completions at some of the company's projects at its Bakken locations could move the firm to become bullish on the stock.

OAS should generate 16% annual organic production growth during the next two years from a highly economic Bakken drilling program where oil comprises ~80% of the volumes, the firm says.

Stifel also notes the Bakken is yielding strong growth and returns for companies with high quality acreage despite a reputation as a relatively mature, second-tier shale play.